NACIA Washington Update
June 26, 2009

This week has been busy, with the House striving to pass Energy and Commerce Committee Chairman Waxman’s (D-CA) climate change legislation prior to the July 4th recess.  As previously reported, Chairman Peterson (D-MN), Ranking Member Lucas (R-OK), and other Members of the House Agriculture Committee have been opposed to the bill for a multitude of reasons.  Chairman Peterson met with Chairman Waxman and Speaker Pelosi (D-CA) several times throughout the past week, developing a compromise that Chairman Peterson feels adequately addresses his concerns with the effects certain provisions would have on farmers and ranchers.  The Peterson Amendment can be found on the House Agriculture Committee website here, and a summary of the amendment here. Chairman Peterson’s statement on the agreement asserts that the deal “works for agriculture and contributes to the reduction of greenhouse gas emissions in the United States.” His full statement is available here.

However, Ranking Member Lucas has asserted that the deal made between Chairman Peterson and Chairman Waxman does not address “the devastation this legislation is going to wreak on America’s farms.”  His press release can be viewed here. We expect the legislation to come to the House Floor for a vote tomorrow.

On the food safety front, the House Agriculture Committee may or may not be considering asserting jurisdiction over the legislation.  As we discussed last week, Ranking Member Lucas had issued a release stating some reservations with the bill and that he would discuss the possibility of jurisdictional issues with Chairman Peterson.  Either way, we do not expect the legislation to be voted on in the House until after the July 4th recess.
 
The House Agriculture Committee has also been busy with hearings, with the Subcommittee on General Farm Commodities and Risk Management holding two this week on Farm Bill implementation.  On Wednesday, the Committee received testimony from Bob Stallman, President of the American Farm Bureau Federation; Ron Litterer, Chairman of the National Corn Growers Association; John W. Hardwick, Chairman of the National Cotton Council; Erik Younggren, Secretary-Treasurer of the National Association of Wheat Growers; and Roger Johnson, President of the National Farmers Union.  This afternoon, the Committee heard from James Miller, Under Secretary for Farm and Foreign Agricultural Services at USDA.  
 
During these hearings, crop insurance and other pertinent issues were discussed.  Representative Markey (D-CO) discussed several matters with Under Secretary Miller, including the recently released GAO report, the RMA study on organic production practices, and available insurance products for fresh fruit and vegetable production.  In his response, Under Secretary Miller cited the expansion the crop insurance program has made in the area of specialty crops, with producers increasing their use of various risk management tools.  He also stated that while small acreage and small markets for some organics and specialty crops make it more difficult for RMA, they are reviewing new proposals, and preparing to do a pilot program studying ways to address those issues.
 
Subcommittee Chairman Boswell (D-IA) queried Under Secretary Miller regarding the role of farmers in helping USDA with insurance issues, specifically referring to the upcoming SRA renegotiation.   Under Secretary Miller replied that there is a role for farmers, and even though the SRA renegotiation is technically between RMA and the companies, there is an open door policy for suggestions and input from farmers.  
 
Several other members brought up issues with the ACRE and SURE programs such as lack of participation, barriers to enrollment, eligibility definitions, enrollment deadlines, pricing issues, and the need for education and training.  In addition, the need for and the issues surrounding computer upgrades were discussed.
On the Senate side, no further activity has occurred since the energy legislation (without a cap and trade provision) was passed out of Senator Bingaman’s (D-NM) Energy and Natural Resources Committee with bipartisan support.  Former USDA Secretary and current Senator Johanns (R-NE) weighed in on the House climate change legislation, saying it was:
“…bad for our nation's agriculture and stifling to businesses. The House bill has sold them out to their overseas competitors, who will face no carbon cap at all.  For farmers, fertilizer prices will go up, natural gas used to dry their grain will sky-rocket in price, fuel prices for tractors and irrigation equipment will shoot through the roof, and don't even ask about your electricity bill.”
The Senator’s entire statement can be found following this email.
 
If you have not yet submitted your dues, please submit online through the secure NACIA website or print out the membership renewal form and mail in your check.  It is essential that there is a strong voice fighting for crop insurance agents, as both the agents’ role and the program itself comes under attack from those who do not understand the important role agents play in this valuable part of our farm safety net.  

As always, please contact us if you have any questions.  
Brent W. Gattis
NACIA Washington Representative

SENATOR JOHANNS STATEMENT ON CAP-AND-TRADE   
June 25, 2009
Washington, DC – Senator Mike Johanns today issued the following statement on cap-and-trade legislation, expected to be voted on Friday in the House of Representatives:
"This legislation contains fatal flaws, plain and simple. It's bad for farmers and ranchers, bad for Nebraska's economy, and bad for America's competitiveness. All that, while producing little benefit. This bill punishes the U.S. economy, while giving even larger emitters a free pass in the form of a huge competitive advantage.
"If there is any positive aspect to this, it would be that it rectifies the EPA's ill-advised indirect land use rule that would undermine our Renewable Fuels Standard. Additionally, it puts carbon sequestration programs where they belong, with the experts at USDA, not with bureaucrats at the EPA who have little knowledge of farmers' environmental stewardship.
“However, on the whole, this legislation is bad for our nation's agriculture and stifling to businesses. The House bill has sold them out to their overseas competitors, who will face no carbon cap at all.
"For farmers, fertilizer prices will go up, natural gas used to dry their grain will sky-rocket in price, fuel prices for tractors and irrigation equipment will shoot through the roof, and don't even ask about your electricity bill.
"But political expediency has won the moment over sound policy. Hopefully, it will not win the day. Some in Congress are trying to convince farmers to buy this old jalopy, claiming it's really a Lamborghini. Some might believe farmers can be duped, but I know better. Farmers and ranchers will not be fooled.
"This flawed policy is a gift to China and India that would tilt our trade imbalance at a dizzying pace. No smoke and mirrors can hide this truth. This legislation, in my judgment, is dead on arrival."